Mineral property - Rights, Royalties and Rents
MetadataShow full item record
In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitution rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on income/profits. On the one hand, a royalty charge creates a ‘deadweight loss’ to society by increasing cut-off grades and decreasing the life-of-mine. They are also regressive. However, they are easy to administer. On the other hand, a rent tax avoids the problem of ‘deadweight loss’; it does not impact on the life-of-mine because the tax structure is neutral. But, they aredifficult to administer correctly, particularly in the determination of rents and the defi nition of mining per se. If rents are incorrectly determined capital markets are distorted. And, if mining activities are incorrectly defined, downstream activities could be adversely affected.
Showing items related by title, author, creator and subject.
The Business of Mining: The Mining Business, Uncertainty, Project Variables and Risk, Royalty Agreements, Pricing and Contract Systems, and Accounting for the Extractive IndustryJones, Odwyn; Lilford, E.; Spearing, S.; Taylor, Grantley (2018)The Business of Mining complete set of three Focus books will provide readers with a holistic all-embracing appraisal of the analytical tools available for assessing the economic viability of prospective mines. Each volume ...
Lilford, Eric ; Guj, Pietro (2020)This book examines existing mineral fiscal policies covering income taxation, royalties, free carried and participative (community and government) interests and also highlights the impacts of these policies on the feasibility ...
Carling, R.; Pope, Jeffrey (2011)The Henry Review of Australia’s Future Tax System released by the Rudd Government in May 2010 is one of the most comprehensive reviews of the tax and transfer system ever undertaken. This paper considers the economic ...